Interest rate cut expected Thursday

It is widely expected that the Bank of England will cut interest rates on Thursday, for the first time since March 2009, as volatility continues to plague financial markets following the EU referendum.

Despite markets projecting a cut following last month’s Monetary Policy Committee meeting its members resisted cutting the base rate as it awaited more detailed data following the Brexit vote.

However the central bank is now expected to cut rates in light of both the latest inflation report and growth forecasts which will also be published Thursday whilst lowering the UK growth forecast by the biggest margin on record.